Reductions in capitation and educational loan interest subsidies for medical students are contemplated. These reductions in aid will increase medical students' costs. The impacts of such costs increases are not known, however, especially the impacts on minority, low-income, moderate-income, and female students. There is concern that such students may be deterred from pursuing careers in medicine, thereby eroding recent gains in diversity among medical students. This study examines potential responses to such cost increases, focusing on changes in who applies, changes in the demand for loans and scholarships, and changes in debt burdens. The study is to have four main parts: (1) Delineation of levels and trends in students' demographic characteristics, in costs and tuitions, in sources of students' funds, and in medical school revenues; (2) Discussion of medical school costs and their impact on financial rewards in medicine; (3) Empirical analyses of variations in application patterns and in the demand for financing; (4) Simulations of variations in debt burdens with respect to policy alternatives. Empirical analyses will rely on standard multivariate regression techniques using secondary data obtained from the Association of American Medical Colleges. The unit of analysis will be the medical school. Simulation analyses will use standard discounting procedures. Physicians' incomes by age, specialty, and location, needed for simulations, will be derived from the 1976 HCFA survey.